Q3 Entra third quarter 2016

Quarterly Report 2016

Central, flexible and environment friendly office properties

1

2

Entra third quarter 2016

Financial highlights – Rental income of 477 million (459 million) in the quarter – Net income from property management of 260 million (258 million) – Positive portfolio value changes of 374 million (522 million) – Profit before tax of 757 million (681 million) – Net letting of 44 million in the quarter

Rental income

Property management

EPRA NAV excl. dividend

+ 18 mill.

+ 2 mill.

+ 10 %

Rental income

Net income from PM

EPRA NAV

(NOKm) 459 500

(NOKm)

(NOK per share)

500

95

437

454

463

477

400

400

300

300

200

200

100

100

0

0 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

258

278 219

258

260

93

90 89

85

90

91

85 80 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

Entra third quarter 2016

Key figures All figures in NOK millions Rental income Change period-on-period Net operating income Change period-on-period Net income from property management

Q3-16

Q3-15

YTD Q3-16

YTD Q3-15

2015

2014

2013

477

459

1 393

1 322

1 760

1 772

1 632

4%

2%

5%

0%

-1%

9%

3%

435

411

1 285

1 198

1 574

1 624

1 475

6%

1%

7%

-2%

-3%

10%

3%

260

258

797

579

799

774

525

1%

15%

38%

-10%

3%

47%

na

Profit before tax

757

681

1 831

2 358

3 075

1 377

458

Change period-on-period

11%

29%

-22%

150%

123%

201%

-43%

Profit after tax

582

492

1 407

1 947

2 721

1 026

466

Change period-on-period

18%

28%

-28%

178%

165%

120%

-35%

Market value of the property portfolio*

35 191

28 756

35 191

28 756

29 598

28 358

24 963

Net nominal interest-bearing debt

17 516

12 843

17 516

12 843

14 640

13 890

14 350

48.7%

43.9%

48.7%

43.9%

46.1%

48.4%

56.6%

2.7

2.9

2.7

2.6

2.5

2.0

1.8

Number of shares

183.7

183.7

183.7

183.7

183.7

183.7

0.1

All figures in NOK per share*

Q3-16

Q3-15

YTD Q3-16

YTD Q3-15

2015

2014

2013

1.0

0.8

3.1

2.5

3.2

3.0

3 158

13%

na

24%

na

8%

na

na

93

85

93

85

89

76

76 998

Change period-on-period

Loan to value* Interest coverage ratio*

EPRA Earnings Change period-on-period EPRA NAV

10%

na

10%

na

16%

na

na

EPRA NNNAV

85

78

85

78

81

68

69 253

Change period-on-period

9%

na

9%

na

20%

na

na

Cash earnings**/***

1.4

1.4

4.3

3.8

5.0

4.1

3 833.3

Change period-on-period

1%

na

15%

na

21%

na

na

Dividend per share

0

0

1.7

na

3.0

2.5

na

Change period-on-period

0

0

100%

na

20%

na

na

Change period-on-period

Reference * See section "Calculation of key figures and definitions" ** Cash earnings in 2015 has been adjusted by 115 million due to termination of swap contracts in Q2-2015. The termination fee was defined as a one-off item and did not reduce cash earnings as a basis for dividend for 2015. *** Cash earnings definition changed from Q1-16 to also include net income from property management for JVs excluding Oslo S Utvikling. See definitions. Several of the numbers are marked as not applicable ("na") as the figures are not comparable either due to historical changes in the P&L or due to changes in the outstanding shares of Entra ASA.

3

Entra third quarter 2016

Financial developments

Like-for-like growth

15

Rental income

477

120 90

*Extraordinary lease buy-out in Q3-15 (30 mill)

60

On a like-for-like basis the rental growth was 4.1 per cent compared to the same quarter last year, of which the annual indexation of the lease contracts constituted 2.8 per cent. The remaining growth is mainly driven by income effects from high letting activity and increased occupancy in Biskop Gunnerus gate 14 in Oslo. Average 12 months rolling rent per square meter was 1,836 (1,716) as of 30.09.16. Near all of Entra´s lease contracts are 100 per cent linked to positive changes in CPI. The annual adjustment is mostly made on a November to November basis.

30

RENT (12M ROLLING) PER SQM AND EPRA OCCUPANCY (NOK)

(%)

1 900

97,0

1 850 96,0

1 800 1 750

95,0

1 700 1 650

94,0

1 600

-30

Renegotiated New - project pf. Net letting

93,0 Q414

Q115

Q215

Q315

Rent per sqm (NOK)

Q415

Q116

Q216

Q316

EPRA occupancy (%)

The occupancy rate increased to 96.1 per cent (94.5 per cent) as of 30.09.16. The rental value of vacant space as of 30.09.16

New - management pf. Terminated

Property costs Total property costs amounted to 42 million (48 million) in the third quarter 2016. Total property costs is split as follows: All figures in NOK millions

Q3-16

Q3-15

YTD Q3-16

YTD Q3-15

Maintenance Tax, leasehold, insurance

14

17

30

33

11

12

25

28

Letting and prop. adm.

10

5

27

28

7

14

26

36

Total operating costs

28

31

78

91

Total property costs

42

48

108

124

Direct property costs

1 550

Q3-16

-35

Q2-16

Other*

150

Q1-16

-8

Q4-15

Disposals

QUARTERLY NET LETTING

Q3-15

33

Q2-15

14

Acquisitions

Q1-15

459

Development projects

Q4-14

Rental income previous period

Q3-14

Q315 - Q316

All figures in NOK millions

Q2-14

The Group's rental income was up by 4 per cent from 459 million to 477 million quarter on quarter. The increased rental income can be explained by the factors in the below income bridge.

Q1-14

Rental income

was approximately 79 million (95 million) on an annualised basis. Gross letting including re-negotiated contracts was 118 million in the quarter of which 41 million is attributable to letting in the project portfolio. Lease contracts with a total value of 22 million were terminated in the quarter. Net letting defined as new lease contracts plus lease-up on renegotiated contracts less terminated contracts came in at 44 million (19 million) in the quarter. The time difference between the net letting in the management portfolio in the quarter and its effect on the financial results is normally 6-12 months. Estimated income effects from letting in the project portfolio can be found in the project table under the section Investments and Divestments.

Q4-13

Results

Q3-13

4

Entra third quarter 2016

Net operating income

Net realised financials

As a consequence of the effects explained above, net operating income came in at 435 million (411 million) in the third quarter 2016.

Net realised financials amounted to 145 million (120 million) in the quarter and is composed as follows: All figures in NOK millions

Other revenues and other costs Other revenues was 71 million (20 million) and other costs was 65 million (17 million) in the third quarter 2016. In the quarter, revenues of 48 million was related to Youngskvartalet in Oslo which is classfied as a construction contract. Until the project is delivered to the buyer, the Group will recognise other revenue and other costs based on the completion level. Other costs associated with the project amounted to 47 million in the quarter. In addition, other revenue consists of 16 million (2 million) in the third quarter 2016 related to services provided to tenants. Other costs also consists of other property costs mainly related to depreciation and rental expenses.

Administrative costs Administrative costs amounted to 38 million (36 million) in the quarter.

Entra`s share of profit from associates and JVs was 57 million (13 million) in the third quarter 2016. The result in the quarter is impacted by positive value changes in associates and JVs and a positive result from Oslo S Utvikling due to sales and delivery of appartments. In Q3 2015 the result was impacted by negative value change in Entra OPF. Entra`s share of profit from associates and JVs is composed as follows:

Income from property management Changes in market value Tax Other income and costs Results from associates and JVs

Q3-15

YTD Q3-16

YTD Q3-15

3

3

6

6

-148

-122

-425

-520

-145

-120

-418

-514

Net realised financials has increased in the third quarter of 2016 compared to 2015, and this is mainly due to increased interest bearing debt of approximately 5 billion compared to the same quarter last year, following the acquisition of the Oslo City and Skøyen properties. The increase in net realised financial is somewhat offset by lower interest rates on floating rate debt (Nibor). The average interest rate was 3.41 per cent (3.90 per cent) as at 30.09.16.

Net income and net income from property management

Result from associates and JVs

All figures in NOK millions

Interest and other finance income Interest and other finance expense Net realised financials

Q3-16

Q3-16

Q3-15

YTD Q3-16

YTD Q3 15

3

1

29

2

37

-18

42

27

-10

5

-18

-12

28

-1

23

12

57

-13

76

29

For a more detailed breakdown of the results from associates and JVs see the section on Partly owned companies.

Net income came in at 315 million (245 million) in the quarter. When including only the income from property management in the results from JVs, the net income from property management was 260 million (258 million) in the quarter, representing a year-on-year increase of 2 per cent.

All figures in NOK millions Net income

Q3-16

Q3-15

YTD Q3-16

YTD Q3-15

315

245

844

606

37

-18

42

27

-10

5

-18

-12

28

-1

23

12

260

258

797

579

Less: Value changes in associates and JVs Tax from associates and JVs Other income and costs Net income from property management

5

6

Entra third quarter 2016

NET INCOME FROM PROPERTY MANAGEMENT PER SHARE (Annualised, rolling 4 quarters) Per share 7,0 6,0 5,0

4,3

4,3

4,5

5,0

5,5

5,3

5,5

EPRA Earnings EPRA Earnings amounted to 175 million (152 million) in the third quarter. The increase in EPRA earnings in the quarter is mainly related to increased net income from property management. EPRA Earnings net of tax amounted to 244 million (242 million) in the third quarter.

4,0

Balance sheet

3,0 2,0 1,0 0,0 Q115

Q215*

Q315

Q415

Q116

Q216

Q316

* Q215 adjusted for 115 million swap termination fee.

Value changes The valuation of the property portfolio resulted in a net positive value change of 374 million (522 million) in the third quarter 2016. In the quarter, about 150 million of the value changes is attributable to yield compression, 32 million relates to the current project portfolio and 124 million is the result of new and renegotiated lease contracts signed in the quarter. The remaining changes are related to terminations of contracts, transactions in the quarter and other property related changes. Net changes in the value of financial instruments was 68 million (-86 million) in the quarter, The positive development in the quarter is mainly explained by higher market interest rates and reduced time to maturity on high interest rate swaps, partly offset by a negative contribution related to decreasing credit margins on existing fixed rate debt.

Tax The Group, except for certain partly owned companies with marginal tax effect, is currently not in a tax payable position due to tax loss carry forward. At year-end 2015, the tax loss carry forward for the Group was 1,272 million. The change in deferred tax was 175 million (188 million) in the quarter. The current tax rate is 25 per cent. However, the effective tax rate is less than 25 per cent mainly due to sales of properties without tax effect.

Profit Profit before tax was 757 million (681 million) and profit after tax was 582 million (492 million) in the quarter. The total comprehensive income was 562 million (495 million) in the quarter impacted by acturial differences related to the groups closed defined benefit scheme.

The Group's assets amounted to 38,178 million (31,027million) as at 30.09.16. Of this, investment property amounted to 34,356 million (28,093 million) and investment property held for sale to 138 million (150 million). Two properties were classified as held for sale as at 30.09.16. Intangible assets were 162 million (194 million) at the end of the quarter of which 145 million is goodwill related to Hinna Park. Investments in associates and jointly controlled entities were 1,585 million (1,121 million). The increase is mainly related to capital injection in the jointly controlled entity Entra OPF that develop MediaCity Bergen, as this company is funded only by equity, and the purchase of 50 per cent of Oslo City Parkering AS, of which Steen & Strøm AS owns the remaining part. Property and housing-units for sale amounted to 676 million (557 million) at the end of the quarter, mainly impacted by the property Gullfaks at Hinna Park. The property had closing at the end of October 2016. At the end of the third quarter 2015 the amount comprised the housing unit project at Ringstabekk of which the major part of the apartments were sold during 2015. Other receivables was 344 million (99 million) at the end of September 2016. The increase compared to the third quarter 2015 was affected by capitalised construction costs of 223 million related to the property Youngskvartalet that will be delivered to the buyer in the fourth quarter of 2017. The Group held 188 million (158 million) in cash and cash equivalents at 30.09.16. In addition, the Group has 4,955 million ( 3,690 million) in unutilised credit facilities. The Group had interest bearing debt of 18,239 million (13,421 million) as of 30.09.16. The increase is mainly explained by the acquisition of the Skøyen portfolio for approximately 2.5 billion, the office section of Oslo City Kjøpesenter AS for approximately 1.6 billion, the development project “Trondheimsporten” for 132 million in Q4 2015 and payment of dividend of 551 million year to date in 2016. Other current liabilities was 707 million (184 million) at the end of third quarter 2016. The increase is mainly explained by halfyear dividend paid of 312 million to the shareholders at the beginning of October 2016. In addition, Entra has recorded a liability in connection with the the settlement of the purchase

Entra third quarter 2016

of the Skøyen portfolio of 92 million and capital injection in Entra OPF to be paid in October 2016. Book equity totaled 13,874 million (12,553 million), representing an equity ratio of 36.3 per cent (40.5 per cent). Book equity per share was 76 (68). Equity per share was 93 (85) based on the EPRA NAV standard and 85 (78) based on EPRA NNNAV. Outstanding shares at 30.09.16 totalled 183.7 million (183.7 million)

Cash flow statement Net cash flow from operating activities came to 263 million (264 million) in the third quarter 2016. The net cash flow from investment activitites was – 2,721 million (-191 million) in the quarter. Proceeds from property transactions of 64 million (14 million) in the quarter was mainly related to the delivery of Fritzners gate 12 in Oslo and Telemarksgata 11 in Skien. In the third quarter of 2015, the amount mainly relates to proceed from the sale of housing units in Ringstabekk outside Oslo. Purchase of investment properties of 2,548 million (0) relates to the acquisition of the Skøyen portfolio in Oslo and the land plot Lars Hillesgate 25 in Bergen. The cash effect from upgrades of investment properties amounted to 192 million (217 million) in the quarter. Investment in property and housing units for sale of 52 million (29 million) in the quarter is mainly related to investments in the property “Gullfaks” in Stavanger and Youngskvartalet in Oslo. Net payments in associates and jointly controlled entities amounted to -42 million (-14 million) in the quarter of which 42 million in the quarter relates to capital increase in Entra OPF that develop MediaCity Bergen.. Net cash flow from financing acitivites was 2,488 million (12 million) in the quarter. During the quarter Entra has had a net repayment of bank loans of 943 million, net issued bond loans amounting to 1,400 million and paid withholding tax related to dividend paid in Q2 2016 of 19 million. The net change in cash and cash equivalents was 31 million (85 million) in the third quarter 2016.

7

8

Entra third quarter 2016

Financing During the third quarter, Entra’s total interest bearing debt increased by 2,508 million, mainly due to the settlement of the Skøyen-transaction. The debt increase was composed by new bond issues totalling 1,400 million, increased bank debt by 1,008 million, and 100 million in new commercial paper financing. Entra’s bond issues during the quarter consisted of a new 5-year green bond of 1,000 million, as well as reopening of a 6-year fixed rate bond with 400 million. Entra has also refinanced commercial paper loans for a total of 600 million. During the quarter, Entra has established a new 4-year bank credit facility of 1,000 million.

Interest bearing debt and maturity structure As at 30.09.16, net interest-bearing nominal debt after deduction of liquid assets of 188 million was 17,516 million. The average remaining term of the Group's debt portfolio was 4.6 years at 30.09.16 (4.6 years as at 30.09.15). The calculation takes into account that available long-term credit facilities can replace short-term debt. Entra’s financing is mainly based on negative pledge of the Group´s assets, which enables a broad and flexible financing mix. Entra’s financing structure includes bank loans, bonds and commercial papers. At the end of the period, 69 per cent of the Group’s financing was from the capital market.

Maturity profile and composition interest bearing debt Maturity profile

0-1 yrs

1-2 yrs

2-3 yrs

3-4 yrs

4+ yrs

Total

Commercial paper (NOKm)

2 000

-

-

-

-

2 000

Bonds (NOKm)

1 029

1 700

1 200

1 200

5 100

10 229

700

110

2 182

20

2 463

5 475

3 729

1 810

3 382

1 220

7 563

17 704

Bank loans (NOKm) Total (NOKm) Commercial paper (%)

54

0

0

0

0

11

Bonds (%)

28

94

35

98

67

58

Bank loans (%)

19

6

65

2

33

Total (%) Unutilised credit facilities (NOKm) Unutilised credit facilities (%) Sources of financing

500

1 300

1 518

980

657

4 955

10

26

31

20

13

100

NOKm

%

Bonds listed at OSE

9 129

52

Secured bond 2030 Entra

1 100

6

Bank loans Entra

3 440

19

Bank loans subsidiaries

2 035

11

Commercial paper

2 000

11

17 704

100

Total

Financing policy and status All figures in NOK millions Loan-to-value (LTV)

30.09.2016

Target

48.7%

Approx. 50%

Interest coverage ratio (ICR)

2.7

Min. 1.65x

Debt maturities 20 million in total value): 

New lease contract for 10 years and 5,100 sqm at Universitetsgata 7-9 in Oslo with the law firm Hjort



New lease contract for 10 years and 4,000 sqm. at Biskop Gunnerus`gate 14 in Oslo with the Railway Directorate



New lease contract for 10 years and 4,000 sqm. in Sundtkvartalet in Oslo with KnowIT



New lease contract for 20 years and 2,250 sqm. in Kongsgaard Alle 20 in Kristiansand with Kristiansand Municipality



Renegotiated contract for 5 years and 14,000 sqm. in Allehelgens gate 6 in Bergen with the Police District West



Renegotiated contract for 3 years and 6,300 sqm. in Akersgata 51in Oslo with the law firm Hjort

MATURITY PROFILE OF THE MANAGEMENT PORTFOLIO: (NOKm) 800 700 600 500 400 300 200 100 0 2016

2017

2018

2019

2020

2021

Rent (NOKm)

2022

2023

2024

2025 ->

11

12

Entra third quarter 2016

Investments and divestments Entra has invested 237 million in the portfolio of investment properties in the third quarter. In addition, Entra has invested 125 million through its non-consolidated jointly controlled entities (250 million on a 100 per cent basis). In addition, Entra has acquired the Skøyen portfolio in Oslo and Lars Hillesgate 25 in Bergen for a total of 2,582 million in the third quarter 2016 and Entra has sold the properties Fritzners gate 12 in Oslo and Telemarksgata 11 in Skien of a total consideration of 64 million.

Project development Ownership (%)

Strømsveien 96 Cort Adelers gate 30

Occupancy (%)

Estimated total project cost* (NOKm)

Of which accrued* (NOKm)

Yield on cost**

Location

Expected completion

Project area ('000 sqm)

100

Oslo

Dec-16

18 100

48

433

337

6.6

100

Oslo

Dec-16

4 700

100

162

134

6.3

Powerhouse Kjørbo, block 3

100

Sandvika

Jul-17

4 200

54

144

101

5.6

Trondheimsporten

100

Trondheim

Nov-17

28 600

77

680

360

6.4

1 419

932

Group:

Total Group

55 600

Jointly controlled companies: Sundtkvartalet

50

Oslo

Dec-16

31 300

64

1 056

946

6.9

MediaCity Bergen

50

Bergen

Aug-17

45 000

73

1 830

1 385

6.1

2 886

2 331

Total Jointly controlled companies

76 300

* Total project cost (Including book value at date of investment decision/cost of land) ** Estimated net rent (fully let) at completion/total project cost (including cost of land)

Status ongoing project At Strømsveien 96 in Oslo, the refurbishment of 18,100 square metres (12,500 sqm offices) is on-going. Completion of the facade and internal work are the main ongoing activities and functional testing of technical systems has commenced. The Norwegian Medicines Agency will be one of the tenants, letting approximately 6,500 square metres. The building will obtain a BREEAM Very Good classification and energy class B. The project will be completed in December 2016. Cort Adelersgate 30 in Oslo is under refurbishment with completion in December 2016. Entra has signed a 10 year lease contract with the Oslo Municipality Education Authority for 4,750 sqm and the building is fully let. Main activities in the period have been work on technical installations and interior work.

In December 2015, Entra purchased the development project "Trondheimsporten", a new-build project centrally located in Holtermanns veg 70 in Trondheim. When completed, the property will be a 15-floor building of approx. 28,600 sqm. office/education and parking. The property is 77 per cent prelet to Trondheim municipality and the Norwegian Labour and Welfare Administration on 10-year contracts. The tenants have options to let the remaining areas in the building. Construction started in January 2016. The building is expected to be finalised during the fourth quarter of 2017 with a BREEAM Very Good classification. During the quarter, the construction works up until the fifth floor is completed, and technical installations have started.

Entra third quarter 2016

In Sandvika Entra is refurbishing the third block at Kjørbo into a new Powerhouse with a BREEAM Excellent classification. A Powerhouse shall during its lifetime produce more renewable energy than it uses for materials, production, operation, renovation and demolition. The property is 4,200 sqm and is 54 per cent pre-let to Asplan Viak.

the Media Faculty of Bergen University, and Vizrt have signed lease contracts. The property is 50 per cent owned by Entra through Entra OPF. Interior work at tower 3 is completed during Q3 and testing of technical systems will start. At tower 1 and 2, interior work is on-going. The project will be completed in August 2017.

Sundtkvartalet in Oslo is a new, environmentally leading office building of approximately 31,300 sqm. The project is in the final faze, and will be completed in December 2016. The ambition is to obtain a BREEAM Excellent classification, a passive house with energy class A. The project is organised through a joint venture where Skanska and Entra own 50 per cent each. Skanska is the building contractor and has also signed a lease for approximately 8,000 square metres in the new property. A new lease contract with KnowIt for 4,400 sqm/10 years has been signed in the quarter.

In July 2015, Wintershall exercised its option to acquire the property project Gullfaks in Stavanger. Gullfaks is a 17,900 sqm office building at Hinna Park in Stavanger. The transaction also includes part of an underground car park. The property is 50 per cent owned by Entra through Hinna Park Eiendom AS. The project was completed in the beginning of August in accordance with the plan and Winterhall has moved in to the new building. Closing has been completed at the end of October 2016.

Media City Bergen, in Lars Hilles gate 30 in Bergen, includes total renovation of approximately 35,000 sqm and an extension of approximately 10,000 sqm. The vision behind the concept is to create an environment for innovation and knowledge development within the media industry, through establishing a cluster of media, technology, education and research companies/ organisations. The largest media companies such as TV2, NRK, Bergensavisen, Bergens Tidene,

Youngskvartalet in Oslo involves both a new building and refurbishment of three existing buildings. The project consists of 9,400 sqm and will be finalised in Q4 2017. The project is forward sold to Industri Energi as part of a larger transaction that took place in 2012 where Entra booked a total gain of 134 million. When finalized, Entra will deliver the project at cost plus a project management fee. Total project cost (incl. land) is approximately 340 million.

13

14

Entra third quarter 2016

Transactions Entra actively seeks to improve the quality of its property portfolio through a disciplined strategy of acquisitions and divestments. Entra focuses on acquisition of large properties and projects in specific areas within our four core markets; Oslo, Bergen, Trondheim and Stavanger. Target areas include areas in the city centers and selected clusters and communication hubs outside the city centers, allowing Entra to offer rental opportunities at a price range that fits its customer base. Entra’s experience, financial strength and knowledge of its tenants makes the company well positioned to make

acquisitions that meet these acquisition criteria. Also, Entra actively divests smaller properties and properties outside its core markets. The acquisition and divestment strategy is flexible, allowing Entra to respond to market opportunities as they arise. Closing of the Skøyen transaction comprising three high quality assets of about 61,000 sqm gross area, took place on 1 September 2016.

Transactions in 2015 and YTD 2016

Purchased properties

Area

Transaction quarter

No of sqm

Transaction value (NOKm)

Closing date

Skøyen portfolio (three properties)

Oslo

Q2 2016

61 000

2 529

01.09.2016

Land plot, Lars Hillesgate 25

Bergen

Q2 2016

TBD

53

01.09.2016

Office part of Oslo City*

Oslo

Q4 2015

40 250

1 650

31.12.2015

Trondheimsporten

Trondheim

Q4 2015

28 600

163

18.12.2015

129 850

4 395

Transaction quarter

No of sqm

Transaction value (NOKm)

Closing date

Sum

Sold properties

Area

Kalfarveien 31

Bergen

Q2 2016

8,440

85

01.11.2016

Fritznersgate 12

Oslo

Q2 2016

824

53

15.09.2016

Telemarksgata 11

Skien

Q2 2016

4 300

11

01.07.2016

Ringstabekk AS**

Bærum

Q1 2016

5 570

114

06.04.2016

Strandveien 13, Tromsø

Tromsø

Q4 2015

11 560

158

28.01.2016

Tollbugata 2, Bodø

Bodø

Q4 2015

940

14

01.12.2015

Hans Kiersgate 1 b and c

Drammen

Q4 2015

2 230

11

30.10.2015

Kirkegata 2 B

Arendal

Q3 2015

5 800

33

30.09.2015

Gullfaks, Hinna Park (forward sale)

Stavanger

Q3 2015

17 900

Est. 700

30.10.2016

Keysersgate 15

Oslo

Q1 2015

315

16

01.03.2015

Portfolio of six properties

Moss, Skien, Lillestrøm

Q1 2015

62 918

1 375

24.02.2015

Grønnegaten 122

Tromsø

Q4 2014

6 600

72

07.04.2015

Skansegaten 2

Stavanger

Q4 2014

4 379

110

09.01.2015

131 776

2 751

Sum * Included 50 per cent of parking basement ** Commercial areas included in number of sqm (residential not included)

Entra third quarter 2016

Partly owned companies Entra selectively gains access to development projects through its shareholding in subsidiaries with non-controlling interests and jointly controlled entities. Entra’s ownership interests currently include the following companies:

Papirbredden Eiendom AS (60 %) Entra and Drammen Municipality own Papirbredden Eiendom AS. The company owns six office properties and a future development potential for around 39,000 sqm in Drammen.

Sundtkvartalet Holding AS (50 %) Entra and Skanska Commercial Development own Sundtkvartalet Holding AS. The company will build a new office building of approximately 31,000 square meters as described under the project development section above.

Oslo City Parkering AS (50 %) Entra and Steen & Strøm own Oslo City Parkering AS. The company owns the parking basement of the property Oslo City.

Hinna Park Eiendom AS (50 %) Entra and Camar Eiendom own Hinna Park Eiendom AS. The company owns three office properties and development potential for two new office properties totalling around 29,300 sqm. The company also owns the project Gullfaks that was completed as planned at the beginning of August 2016 and handed over to Wintershall at the end of October 2016..

Entra OPF Utvikling AS (50 %) Entra and Oslo Pensjonsforsikring (OPF) own Entra OPF Utvikling AS. The company owns two properties in Bergen of which one is the project property MediaCity Bergen in Lars Hilles gate 30. According to the agreement between Entra and Oslo Pensjonsforsikring, Entra OPF Utvikling AS is not to be financed with debt, any capital requirements are thus to be financed with equity contributions from the owners.

Oslo S Utvikling AS “OSU” (33.33 %) OSU is a property development company that is undertaking the development of parts of the city district Bjørvika in Oslo. Entra’s share of the market value of the properties and projects in OSU is estimated at approximately 1.4 billion as of 30.09.16. The estimate is based on valuations from two external appraisers. Entra’s share of the net asset value as at 30.09.16 was 0.7 billion after taking into account estimated latent deferred tax of 10 per cent.

15

16

Entra third quarter 2016

Financial figures for the first nine months of 2016 for partly owned entities and JVs (based on 100 % ownership)

Sum consolidated companies

Papirbredden Eiendom AS

Hinna Park Eiendom AS

Share of ownership (%)

60

50

Rental income

69

60

130

Net operating income

68

52

120

Net income

42

22

144

Sum associated companies & JVs

Entra OPF Utvikling AS

Sundtkvartalet Holding AS

Oslo S Utvikling AS

Oslo City Parkering AS

Other

50

50

33

50

33

14

0

65

12

66

158

9

-1

65

10

65

148

64

7

-3

19

10

63

98

-46

98

67

13

0

5

0

85

3

6

9

0

0

47

0

0

47

Profit before tax

189

-18

171

74

10

67

16

63

229

Tax

-47

4

-43

-19

-3

1

-4

-16

-40

Profit for period/year

141

-14

128

56

7

68

12

47

190

Non-controlling interests

57

-7

50

All figures in NOK millions

Changes in value of investment properties Changes in value of financial instruments

Entras share of profit Book value Market value properties Entras share of market value properties

28

4

23

6

16

76

757

161

513

148

6

1 585

1 625

1 037

2 662

1 575

1 113

3 914

295

6 898

975

519

1 493

788

557

1 305

147

2 797

Entra third quarter 2016

Market development The transaction market is highly active and characterised by high demand for properties in the largest cities. There has been almost as many transactions in 2016 as in 2015, however there has been relatively few large transactions/portfolio sales. The total transaction volume is thus down at more normalised levels. The demand surplus in the market is pushing yields further down and prime yield is now down at 3.9 per cent according to Entra’s consensus report, summarising inputs from leading Norwegian commercial property brokers and analysts.

The Office vacancy in Oslo is expected to drop to 7.8 per cent by the end of 2016 and 7.2 per cent in 2017 according to Entra’s consensus report. A slight increase in rents for modern offices in the city centre is observed, a trend which is expected to continue in 2017 and 2018 due to low construction activity, office to residential conversion and increasing employment. In Bergen and Stavanger, the office vacancy seems to be levelling out at about 10 per cent. Stavanger the numbers are uncertain due to potential hidden vacancy. The negative impact from reduced activity in the oil and gas industry seems to be flattening out. In Trondheim the office vacancy may increase above 10 per cent due to high construction activity.

TRANSACTION VOLUME NORWAY (NOK bn) 140

123

Rent levels in the centre of Bergen is slightly up due to more high quality office space being offered in the market combined with relatively low office vacancy. The office vacancy in Bergen is mainly related to properties situated around the oil and gas intensive office areas at Kokstad / Sandsli / Flesland. Rent levels in the city centre of Trondheim remain stable. The office vacancy in city centre of Trondheim is 6-8 per cent. In Stavanger there has been increasing activity in the office letting market. However, Stavanger is still experiencing downward pressure on rent levels due to significant vacancy.

120 100 80 60 40

62

65

65

2016

2017

40

20 0 2013

2014

2015

Overall, we see relatively low office vacancy and stable or slightly increasing rent levels in the city centres. Entra is in a good position with a portfolio located in central areas of the four largest cities and its long lease contracts with solid tenants.

Source: Entra Consensus report

Market data Oslo 2013 Vacancy Oslo and Bærum (%) Rent per sqm, high standard Oslo office Prime yield (%) Source: Entra Consensus report

2014

2015

2016e

2017e

2018e

7.4

7.8

8.4

7.8

7.2

6.8

2 907

3 025

2 935

2 956

3 065

3 185

5.2

4.7

4.1

3.9

3.9

na

17

Entra third quarter 2016

Other information Organisation and HSE

Events after the balance sheet date

At 30.09.16, the Group had 166 employees. During the quarter, there were no injuries that caused absence from work. Entra has a continuous HSE focus both in on-going projects and in the operations and works continually to avoid injuries. The Group had an LTIF rate (number of accidents with lost time per million hours worked in last 12 months) on ongoing projects of 1.7 at the end of the period vs 3.9 at the end of the previous quarter.

There has been no significant events after the balance sheet date.

Risk and risk management The Group is exposed to financial risk through its debt financing, and changes in interest rate levels on loans at floating rates will affect the Group's cash flow. The risks associated with the development in market rates are managed through active use of interest rate hedging instruments. Liquidity/ refinancing risk is reduced by entering into long-term loan agreements, as well as through establishing a diversified maturity structure and the use of various credit markets and counterparties. The Group's equity is affected by value changes on properties and financial instruments that are due to changes in, among other things, interest and rent levels, yields and other market conditions. Entra is exposed to the letting market, which is affected by macroeconomic changes in, among other things, GDP, the CPI rate and employment. Vacancy in the portfolio and rent changes on renegotiation of existing contracts affect the ongoing cash flow. Efforts are made to reduce the letting risk by systematic customer service, following up contract expiries and plans for letting work, as well as by adapting properties to customers’ requirements. By entering into long leases with a diversified maturity structure, the Group achieves a stable and predictable cash flow. Business and strategic risks include the possible impact on the Group’s operations of political decisions, regulations and significant unforeseen non-recurring events. Entra will be exposed to property tax on a majority of its properties in Oslo from 2017. Entra carries out major upgrading and development projects involving risks in relation to deadlines and costs.

Share and shareholder information Entra’s share capital is NOK 183,732,461 divided into 183,732,461 shares, each with a par value of NOK 1 per share. Entra has one class of shares and all shares provide equal rights, including the right to any dividends. As of 21.10.16, Entra had 5,870 shareholders. Norwegian investors held 61 per cent of the share capital and foreign investors 39 per cent. On 15 September 2016 the Norwegian Ministry of Trade, Industry and Fisheres, sold a total of 30 million shares through a secondary placement. The 10 largest shareholders as of 21.10.16 were:

Shareholder Norwegian Ministry of Trade, Industry and Fisheries

% holding 33.4

Folketrygdfondet

8.8

Geveran Trading

8.2

State Street Bank (Nominee)

2.6

Danske Invest Norske

2.1

The Bank of New York (Nominee)

1.8

JP Morgan Bank Luxemburg (Nominee)

1.4

The Bank of New York (Nominee)

1.4

Danske Invest Norske

1.1

State Street Bank (Nominee) SUM 10 LARGEST SHAREHOLDERS

1.0 61.7

18

Entra third quarter 2016

Outlook The Norwegian economy is still influenced by a weaker macroeconomic development and general uncertainty even though one over several quarters has seen positive development in certain key macro indicators. The downturn in the oil sector and related industries has primarily had a negative impact in the southern and western part of Norway, and sub markets with a high level of oil sector exposure are experiencing increasing vacancies and pressure on rents. Entra is in a relatively good position having low exposure to the geographical areas being hit by the downturn, long lease contracts with solid tenants and a low exposure towards the oil sector. In Oslo, that constitutes around 66 per cent of Entra’s revenues, we expect vacancy levels to have peaked and to see a falling trend going forward as net new office space coming into the market in 2017 and 2018 is marginal due to low new building activity and high conversion from commercial to residential buildings. The slight decrease in market rent levels in previous quarters has flattened out, and we expect a positive trend from 2017. Modern offices located near public transportation are attractive and obtain solid rents compared to premises located in less central areas.

The good credit availability and historically low market interest rates for all maturities has continued. The volatility and uncertainty in the financial markets is high, but Entra, with its strong balance sheet and predictable cash flow, is in a very good position to secure favourable financing also going forward. Property investors seek quality properties with good locations and long and secure cash flows. The yield compression in the Norwegian market is expected to level out. However, Entra’s portfolio with a healthy mix of attractive properties and value enhancing development projects should provide a continued positive value development, albeit at a significantly slower pace. With its flexible properties in attractive locations, strong tenant base with long lease contracts, exciting project pipeline and solid financial position, the Board believe that Entra is well positioned for the future. Oslo, 31 October 2016 The Board of Entra ASA

19

20

Entra third quarter 2016

Financial statements Statement of comprehensive income All figures in NOK millions

Q3-16

Q3-15

YTD Q3-16

YTD Q3-15

2015

Rental income

477

459

1 393

1 322

1 760

Repairs & maintenance

-14

-17

-30

-33

-56

Operating costs

-28

-31

-78

-91

-129

Net operating income

435

411

1 285

1 198

1 574

Other revenue

71

20

184

212

240

Other costs

-65

-17

-174

-197

-224

Administrative costs

-38

-36

-110

-123

-168

57

-13

76

29

44

-145

-120

-418

-514

-625

Net income

315

245

844

606

840

- of which net income from property management

260

258

797

579

799

Changes in value of investment properties

374

522

1 123

1 415

1 818

Changes in value of financial instruments

68

-86

-135

337

417

757

681

1 831

2 358

3 075

Share of profit from associates and JVs Net realised financials

Profit before tax Tax payable

0

0

0

0

0

Change in deferred tax

-175

-188

-425

-411

-354

Profit for period/year

582

492

1 407

1 947

2 721

Actuarial gains and losses

-28

4

-28

4

39

7

-1

7

-1

-10

562

495

1 386

1 950

2 750

575

452

1 357

1 883

2 648

8

41

50

64

73

554

454

1 336

1 885

2 677

8

41

50

64

73

Change in deferred tax on comprehensive income Total comprehensive income for the period/year Profit attributable to: Equity holders of the Company Non-controlling interest Total comprehensive income attributable to: Equity holders of the Company Non-controlling interest

Entra third quarter 2016

Balance sheet All figures in NOK millions Intangible assets Investment property Other operating assets

30.09.2016

30.09.2015

31.12.2015

162

194

161

34 356

28 093

28 823

27

30

35

1 585

1 121

2 789

574

532

530

66

51

53

36 770

30 021

32 391

Property and housing-units for sale

676

557

589

Investment property held for sale

138

150

165

Trade receivables

61

42

55

Other receivables

344

99

206

Investments in associates and JVs Financial derivatives Long-term receivables Total non-current assets

Cash and bank deposits

188

158

212

1 408

1 006

1 226

Total assets

38 178

31 027

33 618

Shareholders equity

13 466

12 204

12 995

409

350

359

Total equity

13 874

12 553

13 354

Interest-bearing debt

14 488

11 600

12 083

Deferred tax liability

3 698

3 363

3 324

Financial derivatives

1 130

1 136

1 121

255

203

237

19 570

16 302

16 764

Total current assets

Non-controlling interests

Other non-current liabilities Total non-current liabilities Interest-bearing debt

3 752

1 821

3 123

Trade payables

275

165

142

Other current liabilities

707

184

236

Total current liabilities

4 733

2 171

3 501

Total liabilities

24 304

18 473

20 265

Total equity and liabilities

38 178

31 027

33 618

21

22

Entra third quarter 2016

Changes in equity

All figures in NOK millions Equity 31.12.2014

Share capital

Other paidin capital

Retained earnings

Noncontrolling interest

Total equity

184

3 556

7 039

286

11 064

2 648

73

2 721

Profit for the year Other comprehensive income Dividend

28

28

-459

-459 -7

Acquired own shares - employee saving scheme

0

-6

-1

Sold own shares - employee saving scheme

0

6

0

184

3 556

9 255

359

13 354

1 357

50

1 407

Equity 31.12.2015 Profit for period Other comprehensive income Dividend Net equity effect of employee share saving scheme Net equity effect of LTI share program Equity 30.09.2016

6

-21

-21

-864

-864

-1

-1

0 184

3 556

0

9 727

409

13 874

Statement of cash flows All figures in NOK millions

Q3 16

Q3 15

YTD Q3 16

YTD Q3 15

2015

Profit before tax

757

681

1 831

2 358

3 075

Net expensed interest and fees on loans

145

158

418

436

645

-111

-158

-390

-464

-584

-57

13

-76

-29

-44

2

4

7

16

18

-374

-522

-1 123

-1 415

-1 818

Changes in value of financial instruments

-68

86

135

-337

-417

Change in working capital

-30

2

-61

19

-26

Net cash flow from operating activities

263

264

741

584

850

Net interest and fees paid on loans Share of profit from associates and jointly controlled entities Depreciation and amortisation Changes in value of investment properties

Proceeds from property transactions

64

14

329

1 740

1 792

Purchase of investment properties

-2 548

0

-2 547

0

-132

Upgrades of investment properties

-192

-217

-539

-673

-911

Investment in property and housing-units for sale

-52

-29

-177

-32

-82

Purchase of intangible and other operating assets

-2

-5

-8

-21

-41

Net payment financial assets

0

10

5

-6

-30

Net repayment of loans to associates and JVs

0

0

0

62

62

-42

-14

-173

-69

-1 720

Net payments in associates and JVs Dividends from associates and JVs Net cash flow from investment activities Proceeds interest-bearing debt Repayment interest-bearing debt Proceeds from/repayment of equity

51

51

51

51

51

-2 721

-191

-3 059

1 052

-1 010

6 332

7 565

14 425

11 129

19 126

-3 825

-7 552

-11 577

-12 345

-18 492

0

-1

-1

-1

-1

-19

0

-551

-459

-459

2 488

12

2 295

-1 677

174

31

85

-24

-40

14

Cash and cash equivalents at beginning of period

158

73

212

198

198

Cash and cash equivalents at end of period

188

158

188

158

212

Dividends paid Net cash flow from financing activities Change in cash and cash equivalents

Entra third quarter 2016

NOTE 1 – ACCOUNTING PRINCIPLES The results for the period have been prepared in accordance with IAS 34 Interim Financial Reporting. The accounting principles that have been used in the preparation of the interim financial statements are in conformity with the principles used in preparation of the annual financial statements for 2015. The financial reporting covers Entra ASA, subsidiaries, associated companies and jointly controlled entities. The interim financial statements have not been audited. In the first quarter of 2016 the Group did some changes to how the profit and loss statement is presented in order to better reflect the underlying operational results and to a greater extent be harmonised with how peer companies and equity analysts present their figures. The major changes are: -

Stating a Net operating income (from property management) Including Net realised financials in Net Income /Net income from property management Including profit from associated and JVs in Net income Establishing “Net income from property management” as Net income minus values changes and tax from associates and JVs and profit from the jointly controlled entity Oslo S Utvikling.

In addition, some changes in the balance sheet have been done in order to improve the presentation.

NOTE 2 – SEGMENT INFORMATION The Group is organised into two geographic units: Oslo and Regional Cities. These units are supported by a Letting and Business Development division and a Development and Technology division. In addition, Entra has group and support functions within accounting and finance, legal, procurement, communication and HR. Each of the geographic units are organised and monitored by management teams in seven geographic areas: Oslo, Trondheim, Sandvika, Stavanger, Drammen, Bergen and Kristiansand. The geographic units do not have their own profit responsibility. The geographical units are instead followed up on economical and non-economical key figures (“key performance indicators”). These key performance indicators are reported and analysed by geographic area to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance. Hence, the Group report their segment information based upon these seven geographic areas.

23

24

Entra third quarter 2016

Operating segments Q3–16:

Oslo

Number

Area

Occupancy

Wault

(#)

(sqm)

(%)

(year)

(NOKm)

Market value (NOK/sqm)

12 months rolling rent (NOKm)

(NOK/sqm)

Net yield (%)

(NOKm)

Market rent (NOK/sqm)

41

610 033

96.7

6.3

22 382

36 690

1 327

2 175

5.5

1 315

2 155

Trondheim

9

117 187

98.2

5.9

2 501

21 339

176

1 504

6.4

170

1 447

Sandvika

9

94 594

91.6

10.3

2 142

22 647

118

1 247

5.0

125

1 321

Stavanger

6

79 078

92.2

9.5

2 076

26 257

128

1 617

5.6

134

1 694

Drammen

8

70 067

94.7

8.5

1 874

26 746

114

1 623

5.7

106

1 516

Bergen

6

57 119

98.8

5.0

1 268

22 196

89

1 566

6.3

95

1 656

Kristiansand

7

45 158

92.9

9.9

665

14 718

51

1 139

6.7

54

1 185

Other

1

5 531

93.5

4.3

63

11 472

7

1 182

8.9

7

1 195

87

1 078 767

96.1

6.8

32 971

30 564

2 010

1 863

5.6

2 004

1 858

Management portfolio Project portfolio

6

98 941

13.9

1 704

17 226

Development sites

5

126 711

2.2

516

4 069

98

1 304 418

7.2

35 191

26 978

Property portfolio

Youngsgt. 7-9 is included in market value of the management portfolio at sales price of 60 million. The calculation of net yield is based on the valuers’ assumption of ownership costs, which at 30.09 corresponds to 8.1 per cent of market rent.

Operating segments Q3–15: Number

Area

Occupancy

Wault

(#)

(sqm)

(%)

(year)

(NOKm)

(NOK/sqm)

(NOKm)

(NOK/sqm)

(%)

(NOKm)

(NOK/sqm)

Oslo

37

507 587

94.9

6.9

17 001

33 495

1 039

2 046

5.7

1 040

2 049

Sandvika

10

100 220

87.2

11.3

2 137

21 324

127

1 264

5.5

129

1 282

Drammen

8

61 497

99.9

9.3

1 389

22 591

92

1 500

6.2

82

1 341

Bergen

6

57 119

99.1

5.5

1 144

20 030

83

1 458

6.5

92

1 605

Trondheim

9

117 182

94.7

6.7

2 342

19 989

168

1 432

6.4

165

1 407

Stavanger

6

77 145

93.0

8.8

2 038

26 418

138

1 783

6.3

135

1 749

Kristiansand

8

46 034

89.8

9.2

589

12 792

48

1 052

7.2

48

1 047

Other

4

22 327

93.5

6.5

238

10 669

25

1 103

9.0

27

1 206

88

989 112

94.5

7.4

26 879

27 175

1 719

1 738

5.9

1 718

1 737

Management portfolio

Market value

Project portfolio

3

79 633

12.4

1 428

17 934

Development sites

6

129 711

0.2

449

3 461

97

1 198 456

7.5

28 756

23 994

Property portfolio

12 months rolling rent

Net yield

Ringstabekk housing project is included in market value of management portfolio at cost price of 34 million. Youngsgt. 7-9 is included in market value of the management portfolio at sales price of 60 million. The calculation of net yield is based on the valuers’ assumption of ownership costs, which at 30.06 corresponds to 7.5 per cent of market rent.

Market rent

Entra third quarter 2016

NOTE 3 – INVESTMENT PROPERTIES All figures in NOK millions

Q3-16

Q3-15

YTD Q3-16

YTD Q3-15

2015

Closing balance previous period

31 364

28 118

28 989

28 230

28 230

Purchase of investment property

2 582

0

4 040

0

213

237

134

654

594

807

Capitalised borrowing costs

3

2

6

21

22

Sale of investment property

-66

-40

-318

-1 524

-1 548

Reclassified to property and housing-units for sale

0

-493

0

-493

-493

Reclassified to construction contracts

0

0

0

0

-60

Changes in value of operational lease

-3

-42

2

-19

-59

377

563

1 121

1 434

1 877

34 494

28 243

34 494

28 243

28 989

138

150

138

150

165

34 356

28 093

34 356

28 093

28 823

Investment in the property portfolio

Changes in value of investment properties Closing balance Investment property held for sale Investment property

Investment properties held for sale include the properties Molovegen 10 in Bodø and Kalfarveien 31 in Bergen. During the third quarter 2016 Entra had closing for the properties Fritzners gate 12 and Telemarksgata 11. Kalfarveien 31 was sold in the second quarter 2016 and are classified as held for sale until closing later in 2016. Sale of investment properties relates to the sale of the property Strandveien 13 in Tromsø, Ringstabekkveien 105 in Bærum, Fritzners gate 12 in Oslo and Telemarksgata 11 in Skien. The value change on operational lease agreements relates to the property Langkaia 1, which is owned under a lease that expires on 31 December 2030. The property will then revert without consideration to the Oslo Harbour Authority. The property is classified as an investment property under IAS 40 and is valued at 679 million (671 million) at the end of the third quarter of 2016. The Group records quarterly a negative value change on the property as the maturity date of the lease approaches.

NOTE 4 – CONTINGENCIES Entra is currently involved in legal arbitration proceedings or disputes with Norwegian Datasenter Group AS/ Greenfield Property AS and Evry ASA. The hearing of the dispute with Norwegian Datasenter Group AS and Greenfield Property AS took place in Oslo District Court in January 2015 and Entra prevailed on all counts. The judgment has been appealed by the counterparty and the hearing of the dispute will take place in February 2017. The hearing of the dispute with Evry ASA/Evry AS took place in Oslo District Court in February 2015 and Evry ASA/Evry AS prevailed. Entra disagrees with the verdict and the ruling has been appealed. The hearing of the dispute took place in October 2016, and the verdict is expected in the fourth quarter 2016. Entra has not made any provision for the claims as the Group considers it not probable that an outflow of resources will be required.

25

26

Entra third quarter 2016

NOTE 5 – INFORMATION ON THE FAIR VALUE OF ASSETS AND LIABILITIES The valuation methods and principles are unchanged in the quarter. See the annual financial statements for 2015 for further information. Set out below is a summary of assets and liabilities measured at fair value divided between the different valuation hierarchies set out in IFRS 7. With the exception of equity capital instruments of 0.5 million (level 3) all assets and liabilities are level 2. Investment properties of 34,494 million are classified at level 3.

All figures in NOK millions

30.09.2016

30.09.2015

31.12.2015

34 356

28 093

28 823

- Investment property held for sale

138

150

165

- Derivatives

574

532

530

1

1

1

35 069

28 775

29 520

- Derivatives

1 130

1 136

1 121

- Bonds

5 336

4 120

4 054

- Commercial paper

2 000

600

1 900

Total

8 466

5 856

7 075

Assets measured at fair value: Assets measured at fair value with change over the result - Investment property

Financial assets held for sale - Equity instruments Total

Liabilities measured at fair value: Financial liabilitites measured at fair value with change over the result

Entra third quarter 2016

CALCULATION OF KEY FIGURES AND DEFINITIONS DEBT RATIO (LTV) All figures in NOK millions

Q3-16

Q3-15

2015

Net nominal interest-bearing debt

17 516

12 843

14 640

Total market value of the property portfolio

35 979

29 226

31 777

Market value of the property portfolio

35 191

28 756

29 598

788

470

525

0

0

1 654

48.7

43.9

46.1

Share of Entra OPF Utvikling (50%) Share of Oslo City Kjøpesenter AS (33,3%)

Debt ratio (LTV) %

INTEREST COVERAGE RATIO (ICR) All figures in NOK millions

Q3-16

Q3-15

YTD Q3-16

YTD Q3-15

2015

315

245

844

606

840

2

3

7

16

18

Results from associates and joint ventures

-57

13

-76

-29

-44

Net realised financials

145

120

418

514

625

EBITDA adjusted

405

381

1 193

1 107

1 440

1

2

4

3

5

EBITDA adjusted for share of Entra OPF Utvikling

406

383

1 196

1 109

1 444

Interest cost

144

129

413

420

548

9

1

28

12

24

153

130

441

432

572

2.7

2.9

2.7

2.6

2.5

Net income Depreciation

Share of EBITDA Entra OPF Utvikling

Other finance expense Applicable net interest cost

Interest Coverage Ratio (ICR)

27

28

Entra third quarter 2016

NET ASSET VALUE – EPRA NAV AND EPRA NNNAV All figures in NOK millions Total equity

Q3-16

Q3-15

2015 13 354

13 874

12 553

Less: Non-controlling interests

409

350

359

NAV per financial statement

13 466

12 204

12 995

Add: Adjustment to property portfolio Add: Revaluation of investments made in the JV Add: Net market value on financial derivatives

27

20

89

198

223

118

556

604

591

2 878

2 576

2 550

EPRA NAV

17 126

15 626

16 342

Market value on property portfolio

35 191

28 756

29 598

Tax value on property portfolio

14 381

12 386

12 476

Basis for calculation of tax on gain on sale

20 810

16 370

17 122

1 041

819

856

Net market value on financial derivatives

556

604

591

Tax expense on realised financial derivatives*

139

163

148

Less: Net result from realisation of financial derivatives

417

441

443

Book value of interest bearing debt

18 239

13 421

15 205

Nominal value of interest bearing debt

17 704

13 001

14 851

Basis for calculation of tax on realisation of interest-bearing debt

536

420

354

Less: Market value of tax on realisation*

134

113

89

15 534

14 254

14 954

Add: Deferred tax arising on revaluation moments

Less: Market value of tax on gain on sale (5% tax rate)

EPRA NNNAV

Entra third quarter 2016

EPRA EARNINGS All figures in NOK millions Profit for period/year - Earnings per IFRS income statement

Q3-16

Q3-15

YTD Q3-16

YTD Q3-15

2015

582

492

1 407

1 947

2 721

Add: Changes in value of investment properties

-374

-522

-1 123

-1 415

-1 818

Tax on changes in value of investment properties*

94

141

281

382

491

Reversal of deferred tax arising from sales of properties (tax excempted)

-8

0

-14

-215

-218

-68

86

135

-337

-417

17

-23

-34

91

112

Profit or losses on disposal of inventory in Oslo S Utvikling

-36

-3

-41

-30

-38

Share of profit jointly controlled entities – fair value adjustments

-37

18

-42

-27

-46

13

-3

15

17

24

Changes in value of financial instruments Tax on changes in value of financial instruments*

Reversal of deferred tax EPRA adjusments jointly controlled entities Net income non-controlling interests of subsidiaries

-10

-17

-28

-31

-34

Reversal of tax non-controlling interests of subsidiaries

2

5

7

8

8

Significant one-off items

0

-30

0

85

85

Tax on significant one-off items

0

8

0

-23

-23

Change in tax rate

0

0

0

0

-252

175

152

563

452

597

-117

-127

-255

-260

-142

175

188

425

411

354

11

29

17

18

24

244

242

750

621

832

Tax payable EPRA earnings Reversal of tax adjustment above Reversal of change in deferred tax from income statement Reversal of tax JVs EPRA earnings net of tax * 25 per cent from Q1 2016, 27 per cent previous periods

29

30

Entra third quarter 2016

Definitions 12 months rolling rent

-

The contractual rent of the management properties of the Group for the next 12 months as of a certain date, adjusted for (i) signed new contracts and contracts expiring during such period, (ii) contract based CPI adjustments based on Independent Appraisers’ CPI estimates and (iii) the Independent Appraisers’ estimates of letting of current and future vacant areas.

Cash Earnings

-

Net income from property management less tax payable

Contractual rent

-

Annual cash rental income being received as of relevant date

EPRA Earnings

-

Net income after tax excluding value changes on investment properties, unrealised changes in the market value of financial derivatives and gains/losses on the sale of properties and their associated tax effects. All adjustments are also made for jointly controlled entities. EPRA earnings are intended to give an indication of the underlying development in the property portfolio

EPRA NAV

-

Net asset value adjusted to include market value of all properties in the portfolio and interest-bearing debt, and to exclude certain items not expected to crystallise in a long-term investment property business model such as e.g. financial derivatives and deferred tax on the market value of investment properties. The objective with EPRA NAV is to demonstrate the fair value of net assets given a long-term investment horizon

EPRA NNNAV

-

EPRA NNNAV is EPRA NAV adjusted to reflect the fair value of debt and derivatives and in order to include deferred tax on value changes. The objective with EPRA NNNAV is to report the fair value of net assets in the Group on the basis that these are immediately realised

Gross yield

-

12 months rolling rent divided by the market value of the management portfolio

Interest Coverage Ratio ("ICR")

-

Net income from property management excluding depreciation and amortisation for the Group including Entra OPF, divided by net

Independent Appraisers

-

Akershus Eiendom and DTZ

Land and dev. properties

-

Property / plots of land with planning permission for development

Like-for-like

-

The percentage change in rental income from one period to another given the same income generating property portfolio in the

Loan-to-value ("LTV")

-

Management properties

-

Properties that are actively managed by the company

Market rent

-

The annualised market rent of the management properties, fully let as of the relevant date, expressed as the average of market rents

Market value of portfolio

-

interest on interest-bearing nominal debt and fees and commitment fees related to investment activities

portfolio. The figure is thus adjusted for purchases and sales of properties and active projects Net nominal value of interest-bearing liabilities divided by the market value of the property portfolio and the market value of the jointly controlled entities Entra OPF Utvikling and Oslo City Kjøpesenter AS

estimated by the Independent Appraisers The market value of all the properties owned by the parent company and subsidiaries, regardless of their classification for accounting purposes. Does not include the market value of properties in associates and jointly controlled entities Net Income from property

-

management

Net income from property management is calculated as Net Income less value changes, tax effects and other income and other cost from associates and JVs

Net letting

-

Net letting is calculated as the annualised rent of new lease contracts plus lease-up on renegotiated contracts less terminated

Net rent

-

12 months rolling rent less the Independent Appraisers’ estimate of ownership costs of the management properties of the Group

Net yield

-

Net rent divided by the market value of the management properties of the Group

Occupancy (EPRA)

-

Estimated market rent of occupied space of the management properties, divided by the market rent of the total space of the

Period-on-period

-

Comparison between one period and the equivalent period the previous year

Property portfolio

-

Properties owned by the parent company and subsidiaries, regardless of their classification for accounting purposes. Does not

Project properties

-

Properties where it has been decided to start construction of a new building and/or renovation

Total area

-

Total area including the area of management properties, project properties and land / development properties

WAULT

-

Weighted Average Unexpired Lease Term measured as the remaining contractual rent amounts of the current lease contracts of the

contracts.

management portfolio. Based on EPRA standard

include the market value of properties in associates and jointly controlled entities

management properties of the Group, including areas that have been re-let and signed new contracts, adjusted for termination rights and excluding any renewal options, divided by Contractual Rent, including renewed and signed new contracts

Entra third quarter 2016

Other information Contact info Arve Regland CEO Phone: + 47 479 07 700 [email protected]

Anders Olstad CFO Phone: + 47 900 22 559 [email protected]

Tone K. Omsted Head of IR Phone: + 47 982 28 510 [email protected]

Entra ASA Post box 52 Økern 0508 Oslo, Norway Phone: + 47 21 60 51 00 [email protected]

Financial calendar Fourth quarter 2016

14.02.2017

First quarter 2017

27.04.2017

Second quarter 2017

12.07.2017

Third quarter 2017

19.10.2017

Fourth quarter 2017

09.02.2018

31

32

Entra third quarter 2016

Head office Biskop Gunnerus gate 14b 0185 Oslo Postal address Postboks 52, Økern 0508 Oslo Tel: (+47) 21 60 51 00 Fax: (+47) 21 60 51 01 E-mail: [email protected] Customer service centre E-mail: [email protected] Tel: (+47) 800 36 872 www.entra.no